Workplace Democracy, Corporate Governance, and U.S. Labor Law

What are Dahl's five criteria of democracy?

Effective participation, voting equality, enlightened understanding, control of the agenda, and inclusion of adults.

Why do we need democracy?

Democracy protects freedom and equality, allows people to participate in decisions affecting their lives, and supports human development.

What is voting by acclamation?

A method of voting where a decision is approved through a collective voice vote rather than individual ballots.

What does the HOA example demonstrate about democracy?

Having democratic procedures does not necessarily guarantee meaningful participation, fairness, or equal influence.

What is Wolff's argument for workplace democracy?

Wolff argues that democracy should extend into the workplace because workers are affected by decisions made by employers but often have little control over those decisions.

What are the three levels of workplace democracy discussed by Eidlin and Uetricht?

The review guide names these levels but does not define them. Check lecture notes for the exact framework.

What is workplace sovereignty?

The idea that workers should have meaningful authority over decisions affecting their working lives.

What is the difference between voice and power?

Voice means employees can express opinions. Power means employees can actually influence or change decisions.

What does voice without power mean?

Employees are allowed to share concerns, but management is not required to act on them.

What is a suggestion box?

A system allowing employees to submit ideas or complaints, but management maintains decision-making authority.

What are pulse surveys?

Short, frequent surveys employers use to collect employee feedback.

What are self-managing teams?

Groups of employees given authority to organize and manage aspects of their own work.

What is a worker cooperative?

A business owned and democratically controlled by its workers.

What is an ESOP?

An Employee Stock Ownership Plan that gives employees an ownership interest in the company, although this does not necessarily give them democratic control.

How does collective bargaining support workplace democracy?

It allows employees to negotiate collectively with employers over wages, benefits, and working conditions.

What is a works council?

An employee representative body that participates in consultation or decision-making on workplace matters.

What is high-commitment HRM?

A management approach emphasizing employee involvement, training, trust, and long-term commitment.

What does it mean that a corporation is a separate legal person?

A corporation has its own legal identity, separate from its owners, and can own property, enter contracts, and be sued.

What is limited liability?

Shareholders generally cannot lose more than the amount they invested in the corporation.

What is asset lock-in?

Corporate assets belong to the corporation rather than individual shareholders and generally cannot be withdrawn at will.

What is entity shielding?

A legal protection that separates corporate assets from the personal creditors of shareholders.

What is shareholder democracy?

A system where shareholders exercise voting rights over certain corporate decisions.

What does one share, one vote mean?

Voting power is based on the number of shares owned rather than one vote per person.

What is proxy voting?

When shareholders authorize someone else to vote on their behalf.

What are institutional investors?

Organizations such as pension funds and investment firms that invest large amounts of money on behalf of others.

What are independent directors?

Board members who are not part of the company's management and are expected to provide independent oversight.

What happened in the Enron scandal?

Enron used fraudulent accounting practices to conceal financial problems, eventually leading to its collapse.

What happened with Luckin Coffee?

The company was involved in an accounting scandal involving fabricated sales figures.

What is shareholder primacy?

The belief that corporations should prioritize the financial interests of shareholders.

What is stakeholder theory?

The idea that corporations should consider the interests of employees, customers, communities, suppliers, and shareholders.

How does the Boeing 737 MAX case relate to stakeholder theory?

It illustrates the potential consequences of prioritizing business pressures while failing to adequately protect stakeholders such as passengers and employees.

What was significant about Volkswagen's 1993 works council agreement?

Volkswagen negotiated reduced working hours as an alternative to large-scale layoffs.

What was the Business Roundtable's 2019 pledge?

Major corporate leaders stated that businesses should serve all stakeholders, not just shareholders.

What is the purpose of the EU's 2024 supply chain due diligence law?

To require certain large companies to address human rights and environmental risks connected to their operations and supply chains.

What is the main purpose of a labor union?

To represent workers collectively and improve wages, benefits, working conditions, and workplace protections.

When did U.S. union density reach its historical peak?

1954, according to the professor's review guide.

How has union density changed over time?

Union membership as a percentage of workers has declined significantly, especially in the private sector.

What is the approval-membership gap?

The difference between the relatively high percentage of Americans who approve of unions and the much smaller percentage who belong to one.

What was the Wagner Act of 1935?

A federal law that established important protections for private-sector employees to organize and bargain collectively.

What does Section 7 of the NLRA protect?

Employees' rights to organize, join unions, bargain collectively, and engage in concerted activities for mutual aid or protection.

What is the NLRB?

The National Labor Relations Board, a federal agency that administers and enforces the NLRA.

What is an unfair labor practice?

Conduct by an employer or union that violates workers' rights under the NLRA.

Which workers are generally excluded from NLRA coverage?

Independent contractors, agricultural workers, domestic workers, supervisors, and public-sector employees.

What is the Railway Labor Act?

A federal law governing labor relations in the railroad and airline industries.

What percentage of workers must sign authorization cards to petition for an NLRB election?

At least 30% of employees in the proposed bargaining unit.

What is the typical union organizing process?

Authorization cards, petition, campaign, election, and certification.

What is required for a union to win an NLRB election?

A majority of the valid votes cast.

What was the Taft-Hartley Act of 1947?

A law that amended the NLRA and placed additional restrictions on unions and certain union activities.

What is a closed shop?

An arrangement requiring employees to already be union members before being hired. The Taft-Hartley Act prohibited closed shops.

What is a secondary boycott?

When a union pressures a neutral business to stop dealing with an employer involved in a labor dispute.

What does Section 14(b) allow?

States to enact right-to-work laws.

What is a right-to-work law?

A law prohibiting agreements requiring employees to join or financially support a union as a condition of employment.

What is the free-rider problem?

When workers benefit from union representation without contributing financially to support it.

What are captive audience meetings?

Employer-organized meetings where employees are required to listen to management's views about unionization.

What was significant about the NLRB's 2024 Amazon captive audience decision?

The NLRB ruled that mandatory meetings where employers express their views on unionization violate the NLRA.

What was significant about the Amazon JFK8 union election?

Workers at Amazon's Staten Island JFK8 warehouse voted to unionize in 2022, marking a major victory for the Amazon Labor Union.

What does the Smithfield Tar Heel campaign demonstrate?

How sustained worker organizing and outside community support can help workers overcome employer resistance.

What is collective bargaining?

The process where employers and worker representatives negotiate employment terms.

What are mandatory bargaining subjects?

Issues employers and unions are legally required to bargain over, such as wages, hours, and working conditions.

What are permissive bargaining subjects?

Issues parties may negotiate but are not legally required to bargain over.

What are illegal bargaining subjects?

Proposals that would violate the law if included in a collective bargaining agreement.

What is mediation?

When a neutral third party helps employers and unions reach an agreement without imposing a binding decision.

What is a lockout?

When an employer temporarily prevents employees from working during a labor dispute.

Why is individual bargaining often difficult for workers?

Workers may face unequal bargaining power, replaceability, limited information, and fear of retaliation.

What is information asymmetry?

When one party has more relevant information than the other, creating an advantage during negotiations.

What is the productivity-pay gap?

The difference between growth in worker productivity and growth in worker compensation.

What is the union wage premium?

The wage advantage associated with union representation compared with otherwise similar nonunion employment.

Why might non-college workers benefit more from unions?

Collective bargaining can provide greater wage and benefit improvements for workers with less individual bargaining power.

What is the monopoly face of unions?

Freeman and Medoff's idea that unions can use collective bargaining power to raise wages above competitive market levels.

What is the voice face of unions?

The idea that unions provide workers with collective representation that can improve communication and workplace outcomes.

What is a hiring hall?

A system, often administered by a union, that connects workers with available jobs.

What is a Project Labor Agreement?

A pre-hire collective bargaining agreement establishing employment conditions for a construction project.

What is selection bias?

When the people or organizations being studied are not representative of the broader population.

What is survivorship bias?

When conclusions are based only on cases that survived or succeeded while ignoring those that failed.

What does Wald's airplane example demonstrate?

The importance of examining missing or unsuccessful cases rather than relying only on visible survivors.

How can unions benefit employers?

By reducing turnover, improving communication, increasing employee commitment, and creating more stable employment relationships.

How can unions create costs for employers?

Through higher labor costs, potential strikes, reduced flexibility, and bargaining obligations.

What is organizational inertia?

The tendency of organizations to resist change because of established structures, routines, and practices.

What is distinctive about collective bargaining in France?

Collective bargaining agreements cover many workers even though union membership is relatively low.

What was significant about the 2023 UAW contracts?

The contracts secured substantial wage increases and other improvements while increasing labor costs for automakers.

What is a strike?

A collective work stoppage by employees intended to pressure an employer or achieve a workplace-related goal.

What are the four elements of a strike?

The review guide references four specific elements without listing them. Check lecture notes for the exact four.

What do Sections 7 and 13 of the NLRA establish regarding strikes?

Section 7 protects concerted activity, while Section 13 preserves the right to strike, subject to legal limitations.

What is a no-strike clause?

A provision in a collective bargaining agreement restricting strikes during the contract period.

What is an economic strike?

A strike over economic demands such as higher wages, better benefits, or improved working conditions.

Can economic strikers be permanently replaced?

Under the Mackay Radio doctrine, employers may generally hire permanent replacements for economic strikers, subject to legal restrictions.

What is an unfair labor practice strike?

A strike protesting an employer's unlawful labor practices.

What is the difference between economic and ULP strikers?

Economic strikers may be permanently replaced under certain circumstances, while ULP strikers generally have stronger reinstatement rights.

What is a recognition strike?

A strike intended to pressure an employer to recognize a union as the workers' representative.

What is a sympathy strike?

A strike where workers stop working in solidarity with another group of striking workers.

What is a wildcat strike?

A strike that occurs without official union authorization.

What is a sit-down strike?

A strike where employees stop working but remain inside the workplace.

What is a slowdown?

When workers intentionally reduce their pace of work rather than completely stopping.

What is an intermittent strike?

A strategy involving repeated short work stoppages separated by periods of work.

What was significant about the Fansteel decision?

The Supreme Court held that the NLRA did not protect workers from discharge for participating in an unlawful sit-down strike involving seizure of employer property.

What happened during the PATCO strike in 1981?

President Reagan fired thousands of striking federal air traffic controllers after they refused to return to work.

What is the leverage logic of strikes?

Workers create economic pressure by withholding their labor, encouraging employers to negotiate.

What factors increase a strike's effectiveness?

Strong worker participation, financial support, strategic timing, community support, and the ability to disrupt operations.

How do striking workers support themselves financially?

Through strike funds, community assistance, other income, and unemployment benefits where available.

What was the UAW Stand Up Strike of 2023?

A strategy where the UAW gradually expanded strikes across selected facilities rather than striking every location simultaneously.